Pirelli RE sells Große Straße retail asset to Union Investment

German investor Union Investment Real Estate has acquired the Große Straße retail property in Osnabrück, Germany for its Unilmmo:Deutschland open-ended real estate investment fund. Italy's Pirelli Real Estate is selling the asset for a total of EUR 34 mln.

'With the acquisition, we have supplemented our portfolio with a further attractive retail project,' said Frank Billand, member of the management board of Union Investment Real Estate with responsibility for asset management. The retail premises profit from the high footfall and, because of the top-of-the-range tenant structure, provide stable yields, he added.

Pirelli RE will continue to manage the building, which was developed and completed at the end of 2009. The building provides 7,000 m² of rented space. The C&A fashion clothing store, as main tenant, is renting an area of 4,800 m² spread across three floors. Further major tenants are Pieper
perfumery and the Dutch accessories supplier Xenos.

Pirelli RE has been selling a number of German assets over the past months. In late 2009, Italy's largest property group sold the Mercado shopping centre in Hamburg to Union Investment for EUR 164 mln.